ETH/USD is about to go through a classic dead cat bounce. target based on pattern projection of the rising wedge here is labeled on the chart. most major coins that follow the lead of Bitcoin are showing a similar pattern right now. volume is descending across the wedge, which should confirm the pattern as the price is diverging from volume.
trade at your own risk.
Komen
⋅
after looking at the chart again due to recent movement, my target and buy orders are unchanged.
Komen
⋅
this is my current chart for reference; this can now be viewed as a head & shoulders reversal with the same target as my original chart.
Downside breakouts from rising wedges don't usually retrace that far down. We'll have to look for other patterns along the way.
Anyway, I agree it will most likely break downwards and the 1 day chart MACD doesn't look very optimistic. I think we haven't seen the last of this big crypto correction.
team_USA
⋅
@BogdanDimi, how far of a retrace are you expecting? I thought it was the length of the wedge after a breakdown from the bottom of it.
BogdanDimi
⋅
@team_USA, I think it varies depending on where across the bottom line of the channel the wedge breaks. The further up it is, the less it would retrace. I use Bulkowski's measure rules generally: thepatternsite.com/risewedge.html
since the price is rising... are we now seeing a double bottom formation? @team_USA are you still bearish on this?
team_USA
⋅
@brenguyrulez, yes I'm still bearish in the medium-term. target is unchanged.
armenhammer21
⋅
Your analysis has been great, as well as others I've read today. I also learned that my exchange GDAX trades at almost $30 more than yours (Bitfinex), I suppose that should play a factor in determining which price to buy low at, right?
team_USA
⋅
@armenhammer21, thanks! if you add $30 to whatever you're looking at on my chart to buy into, you'll definitely be fine.
JBoro111
⋅
So you're expecting a crash down to 397? I'm not so sure
armenhammer21
⋅
would you recommend a trade at this time? I tried to buy low on the dip to $465 on Dec 22 and I dropped the ball big time. I didn't lose any money, but I was disappointed in myself that I had to buy higher than what I sold at midst the crash and lost a couple ether. I want to take advantage of this drop and get back the ether I lost and some ideally.
Anyway, I agree it will most likely break downwards and the 1 day chart MACD doesn't look very optimistic. I think we haven't seen the last of this big crypto correction.